Tourism Trends of Philippines’ Major Markets Secretary JOSEPH H. DURANO Department of Tourism

Worldwide Visitor Arrivals and Receipts, 1994 - 2004 Visitor Arrivals % Inc/ Visitor Receipts % Inc/ (in Millions) Dec (in US$ Billions) Dec 1994 517.3 4.3% 353 1995 551.5 6.6% 401 13.6% 1996 585.8 6.2% 434 8.2% 1997 610.0 4.1% 443 2.0% 1998 628.2 3.0% 441 (0.5%) 1999 651.8 3.8% 457 3.6% 2000 696.1 6.8% 477 4.3% 2001 694.6 (0.2%) 464 (2.7%) 2002 702.6 1.1% 474 2.1% 2003 694.0 (1.2%) 514 8.4% 2004 526.0* 12.0% n/a n/a * January – August 2004 Source: World Tourism Organization

Regional Distribution of International Tourist Arrivals, 2001 – 2003 (in Million) Europe 402.8 402.7 399.8 401.5 Americas 128.3 121.0 114.9 112.4 Asia and the Pacific 115.3 120.9 131.3 119.1 Africa 27.0 28.2 29.1 30.5 Middle East 22.7 21.8 27.6 30.4 Total 696.1 694.6 702.6 694.0 Growth Rate 6.8 (0.22%) 1.1% (1.22%) Source: World Tourism Organization

Major Tourist Destinations in 2003 Visitor Volume Visitor Receipts ( in Million) (in US$ Billion) France 75.0 36.6 Spain 52.5 41.7 United States 40.4 65.1 Italy 39.6 31.2 China 33.0 17.4 United Kingdom 24.8 19.4 Austria 19.1 13.6 Mexico 18.7 n/a Germany 18.4 19.1 Canada 17.5 n/a Source: World Tourism Organization

Visitor Arrivals to the Philippines Actual Projected Actual Arrivals (in Million) Year Volume Growth Rate 1996 2.05 16.4 % 1997 2.22 8.5 % 1998 2.15 (3.3)% 1999 2.17 1.0 % 2000 1.99 (8.2)% 2001 1.80 (9.8)% 2002 1.93 7.6 % 2003 1.90 (1.3)% 2004 2.05 23.0% * January - November Projected Arrivals (in Million) Year Volume Growth Rate 2004 2.25 18% 2005 2.55 13% 2006 2.96 16% 2007 3,40 15% 2008 3.88 14% 2009 4.42 14% 2010 5.00 13%

Philippine Visitor Receipts Actual Projected Actual Tourism Receipts (in US$ Billion) Year Volume Growth Rate 1996 2.70 10.1% 1997 2.83 4.8% 1998 2.41 (14.8)% 1999 2.55 5.8% 2000 2.13 (16.4)% 2001 1.72 (19.3)% 2002 1.74 1.0% 2003 1.52 (12.5)% 2004 1.61* 32.4% * January - October Projected Tourism Receipts (in US$ Billion) Year Volume Growth Rate 2005 2.34 16.0% 2006 2.72 16.0% 2007 3.12 15.0% 2008 3.56 14.0% 2009 4.06 14.0% 2010 4.59 13.0%

Philippines Major Markets, January – November 2004 Rank Country 2004 2003 Growth Rate % Share 1 USA 424,190 332,714 27.5% 20.7 2 Japan 348,472 289,499 20.4% 17.0 3 Korea 340,486 269,641 26.3% 16.6 4 Greater China 291,477 238,183 22.4% 14.2 5 Australia 74,532 58,268 27.9% 3.6 6 Singapore 55,605 46,573 19.4% 2.7 7 Canada 54,489 42,817 27.3% 2.7 8 United Kingdom 49,412 40,731 21.3% 2.4 9 Germany 39,733 33,013 20.4% 1.9 10 Malaysia 31,455 27,808 13.1% 1.5 Overseas Filipinos 90,918 84,023 8.2% 4.4 Note: Greater China includes: Hong Kong , Taiwan, and Mainland China

Philippines’ Share of Greater Chinese Market, 2001-2003 Indicators 2001 (Volume) 2002 2003 Outbound 28.38 M 32.81 M 30.45 M Arrivals to the Philippines 238,612 286,791 238,183 Market Share 0.84% 0.87% 0.78% Note: Greater Chinese Market includes Hong Kong, Taiwan, and Mainland China

Philippines’ Share of Japanese Market, 2001-2003 Indicators 2001 (Volume) 2002 2003 Outbound 16.22 M 16.52 M 13.30 M Arrivals to the Philippines 343,840 341,867 322,896 Market Share 2.12% 2.07% 2.43%

Philippines’ Share of Korean Market, 2001-2003 Indicators 2001 (Volume) 2002 2003 Outbound 6.08 M 7.12 M 7.09 M Arrivals to the Philippines 207,957 288,468 303,867 Market Share 3.42% 4.05% 4.29%

Share of Balikbayan Market to Total Balikbayan Population in North America, 2001-2003 Indicators 2001 (Volume) 2002 2003 Estimated Total Balikbayan Population USA Canada n/a 4.1 M ++ 759,118 Total Balikbayan Arrivals to the Philippines 333,710 Market share to total Balikbayan population 6.87% Source: CFO, POEA, and DFA

Creation of Task Forces Issuance of Office Circular No. 2004 - 25 creating the China, Korea, Japan, and Balikbayan also known as “Biyahe Tayo” Task Forces composed of: Head Monitoring and Evaluation Coordination and Information Secretariat Task forces report directly to the DOT Secretary on the implementation of the marketing plans.

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2005 Work Program for other Markets AREA PROGRAM/PROJECTS/ACTIVITIES BUDGET (In Php Millions) ASEAN ASEAN Tourism Forum 2.329 Philippine Tourism Roadshow .300 Asian Dive Expo .171 National Association of Travel Agents in Singapore .143 Malaysia International Travel Fair 2005 .228 PATA Travel Mart 1.557 Spa and Wellness Exhibition .150 Discover Southeast Asia Travel Exhibition and CTC Holidays .086 Advertising and Promotions .400

2005 Work Program for other Markets AREA PROGRAM/PROJECTS/ACTIVITIES BUDGET (In Php Millions) HONG KONG International Travel Expo 2005 1.710 Production of collateral materials in Chinese language 3.192 Maintenance of DOT website in Chinese language .684 Bus Mobile Ads 1.140 30th Anniversary of Philippine-China Diplomatic Relations Advertising in local print media and local TV stations 5.700 Taiwan Taichung International Travel Fair .185 WOW Philippines Product Presentation .100 Kaoshiung International Travel Fair WOW Travel Presentation Kaoshiung, Taiwan

2005 Work Program for other Markets AREA PROGRAM/PROJECTS/ACTIVITIES BUDGET (In Php Millions) Taiwan (cont..) Taipei International Travel Fair in Taiwan 1.000 Advertising and Publicity Campaigns WOW Philippines Product Presentation Taipei .150 Collateral materials .750 WOW Philippines Dive Presentation .100 WOW Philippines Cultural Promotions .285 Taipei International Lantern Festival .075 WOW Philippines Banners .057 Australia Adelaide Travel Show .421 Sydney Holiday and Travel Show .228

2005 Work Program for other Markets AREA PROGRAM/PROJECTS/ACTIVITIES BUDGET (In Php Millions) Australia (cont..) Melbourne Holiday and Travel Show .285 Sydney Travel Agents Seminar .044 Melbourne Travel Agents Seminar Balikbayan Program (Filipino Community Program) 1.994 New York Adventures in Travel Expo .034 ASEAN Evening for travel agents and writers .091 Philippine Seminar, PATA Baltimore and Washington DC Chapters .143 2005 Life Insurance and Market Research Association International Annual Meeting .171 American Society of Travel Agents World Congress and Travel Show

2005 Work Program for other Markets AREA PROGRAM/PROJECTS/ACTIVITIES BUDGET (In Php Millions) New York (cont..) Advertorial on Northwest Traveler Magazine 1.653 Frankfurt International Tourismus Bourse 10.000 Consumer Fairs .304 Travel Trade and Media Invitationals .380 Travel Trade “PEP” Educational .076 Agent Seminar .551 Joint Promotional Flyers .228 Asia Pacific Workshop - Switzerland .446 Feiren Reisen - Austria .342

2005 Work Program for other Markets AREA PROGRAM/PROJECTS/ACTIVITIES BUDGET (In Php Millions) Frankfurt (cont..) Information Materials in German and Russian 2.336 London World Travel Mart 8.000 Sales Presentations (London, Stockholm, Copenhagen, Oslo) .509 Brochure support for the UK Major Tour Operators (Kuoni, Hayes and Jarvis, Silverbird) .848 Travel Trade Fairs in Scandinavia and Nordic (REISELIV, MATKA, FERIE, TUR) 2.260 Paris Diving Sales Promotions 1.520 Sales Calls during Diving Events/Marketing Support to Dive Operators in Diving Events .507 Marketing Activities with the Filipino Communities 1.013 Consumer Promotions 5.319